Communications Minister Jyotiraditya Scindia has ruled out any relief for telecom companies on the issue of Adjusted Gross Revenue (AGR) dues, stating that the government has no plans to waive interest or penalties following the Supreme Court's verdict. In an interview with The Times of India, Scindia emphasised that the matter has been settled by the apex court and there is no proposal on his table to revisit it.
Also Read: Government Stake in Vodafone Idea Rises to 48.99 Percent After Fresh Equity Allotment
No AGR Waiver After Supreme Court Verdict
Responding to queries on the continued financial struggles of Vodafone Idea (Vi), Scindia made it clear that the government will not increase its equity stake in the company beyond the current 49 percent, and it is now the company's responsibility to take care of profit and loss and the balance sheet, according to the report dated May 31, 2025.
"Based on government policy, we converted close to Rs 36,000 crore of Vodafone Idea's dues into equity. We are at 49 percent today, and I do not see us increasing that equity stake in the near future, at all. It's the responsibility of each company," he said.
This statement follows Vi's late-night earnings report on Friday, May 30, 2025, in which the company posted a consolidated net loss of Rs 7,166.1 crore for the quarter ending March 2025.
At its Friday meeting, Vi's board approved the raising of Rs 20,000 crore through a follow-on public offer (FPO), private placement including qualified institutional placement (QIP), or any other permissible mode.
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Vodafone Idea Must Manage Its Own Revival
The minister underscored that telecom companies are responsible for managing their own financial health. "Profit and loss and the balance sheet are the responsibility of the management of each company—be it BSNL, Vodafone Idea, Jio, or Airtel,” he added. While the government does meet company executives when approached, Scindia said he does not believe in interfering in corporate operations, regardless of whether the entity is public or has government equity involvement.
"They have to define their own path at end of the day. That's the job of CEO of Vodafone Idea," Scindia reportedly said when asked about turnaround timelines and accountability, especially since public funds have been used to support the company.
"There's nothing on my table at this point, so I can't comment. I think the Supreme Court has ruled on the matter, and that's where it stands," Scindia reportedly said when asked whether the government plans to introduce legislation to protect telecom companies from penalties and interest.
Also Read: Vodafone Idea Must Clear Government Dues, Says Minister
Satellite Communications Open for Global Players
On the issue of satellite communications, Scindia said the Department of Telecommunications (DoT) has received recommendations from the Telecom Regulatory Authority of India (TRAI) and will begin processing them. While he did not provide a specific timeline for the rollout of satcom services, he assured that efforts are underway to expedite the process.
Commenting on the entry of global players such as Starlink and Amazon's Project Kuiper, Scindia said the Indian market is open to competition. "Whoever wants to come into my market, check all the boxes in terms of the rules and regulations and processes—we want you here," he said, adding that customer choice remains the top priority. He emphasised that a healthy market thrives on competition, whether from domestic or international players.
Indian Market Welcomes Competition
"Just like the fixed line space or the mobile space or the broadband space, similarly in satellite, I want competition. Everyone is welcome here. Tick the boxes. Hurry up and start business," the Union Minister reportedly said.
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